Facebook’s Cryptocurrency Won’t Let You Buy Your Privacy Back

Financier CRYPTOCOINSNEWS 191 Views

Perhaps it alarms to open the minds of users too much: from cryptocurrency they might graduate to better social media podia, like Minds.com.

What will the real value of another token pegged to the US dollar be to the crypto community? We can fake that over such a broad swath of users, the thing is bound to see some real utility. We can expect the just the same for Telegram, who’ve decided to build a blockchain from scratch – something to compete in the ever-deepening sea of smart contract platforms peer Tron and Cardano.

But if the coin is just issued by Facebook, at its discretion, without any real decentralized governance, does it equitable qualify as a cryptocurrency? That much is debatable. We’ve talked before about the properties of a cryptocurrency, and why JP Morgan’s internal stablecoin at most doesn’t fit the bill.

There is some delineation, too, between algorithmic stablecoins like MakerDAO’s Dai, which is a collateralized asset and regulated currencies like Paxos Standard. The Dai essentially relies on the market to determine the validity of its tokens – coins are backed by at particle 150% their value in Ethereum, which provides a pretty good cushion to ensure liquidity.

LOL Zuckerbucks

As Minds.com CEO Reckoning Ottman has said, it’s fabulous that Jack Dorsey and Mark Zuckerberg, proprietors of the tools of mass distraction for a unbroken generation, are interested in sound money. It’s good that they’re investing resources into blockchain technologies. But if they don’t perambulate the walk, why should we listen to them talk?

Cool example of #BitcoinTwitter experimenting on the Lightning Network.

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⚡️Torch ascertained, now passing along to @starkness! #LNtrustchain https://t.co/YVMAv62fCN

— jack (@jack) February 5, 2019

The name Jack Dorsey has gone parabolic in crypto societies recently due to his participation in the Lightning Network torch event and friendship with Elizabeth Stark. Dorsey still endures censoring unpopular speech, though, which Bitcoin and cypherpunks as a whole despise.

Typically, we understand that censorship is the but effective tool for any debate. In too many cases, it provides undue interest and influence to the censored. Most of those trolls outlawed from Twitter are, in fact, disgusting people. But now they’re all shacked up at Gab, with fewer and fewer people to call them on their sh*t. But Tizzy gets it wrong from time to time. See the whole #learntocode debacle:

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Facebook’s crypto arrangements are still pretty unclear. One thing is for certain: the blockchain can be used for anything at all. It can be used to increase personal freedom – or be it away. Blockchains store value, track supply chains, and enable tamper-resistant voting. The technology can probably also be occupied to successfully launch an uncontrollable version of SkyNet.

Facebook Coin: The Antithesis of a Privacy Coin

Here’s a thought, while. If you think Chainalysis’ analytical tools are scary, imagine what a cryptocurrency built by Facebook might reveal. If it identifies, for example, that you held the token, and then someone else held it, and then someone in Iran managed to proffer it, would that trace back to you? How much user data will be present in these tokens? Will they set up a prayer of being fungible or tradeable on regular crypto exchanges?

Whatever they do, the blockchain natives will go on with to do better. That’s my opinion until I see evidence otherwise. Facebook should just create an open money API and let the divers players in the blockchain space compete for dominance on it. They’d probably make more money that way and have minuscule need for blockchain engineers.